TextMagic AS 2024 6 months consolidated unaudited interim report
In the first half year of 2024, the TextMagic Group's operating profit increased by 28% to €1,139 thousand compared to the same period in 2023 (H1 2023: €887 thousand). The net profit amounted to €1,287 (H1 2023: €757 thousand). The Group's day-to-day operations will continue along the roadmap set at the end of 2023, with the main objective of developing and expanding the Textmagic platform and restoring the growth rate.
TextMagic Group has assessed the evolving regulatory environment, market trends, competitive landscape and customer needs in order to develop strategic growth plans. To achieve sustainable growth, we are committed to continued investment in software development, which is why we have expanded our product development teams.
As of June 30, 2024, the team consisted of 91 individuals (111 as of June 30, 2023), of whom 48 (27 as of June 30, 2023) were part of the Textmagic platform development team. The Voog.com platform development team comprises 6 members as of the end of June 2024 (3 as of June 30, 2023). In addition to this core team, the group also includes a marketing department, user support, a finance team, and management.
In today's competitive market, it is increasingly challenging to drive growth with SMS-only product offerings. To enhance the appeal of our Textmagic platform to new audiences, we have identified the need to extend the value proposition of the product in 2024.
In March 2024, a BYOC (Bring Your Own CPaaS) solution was launched for high-volume customers who prefer the convenience of the Textmagic platform but wish to remain with their current communications provider.
Textmagic platforms’s communication channel functionality (Chat AI), checklists, as well as user and task management have been enhanced. Additional communication channels (Email, Messenger, Live Chat, WhatsApp) and functionalities (Tickets, Deals, CRM) are in development. The added functionalities, along with the projects under development will provide an opportunity to increase the value proposition and customer base of the product in the future.
Group unaudited key figures of 2024 6 months
| H1 2024 | H1 2023 | Change | |
| Revenue | €7.81 M | €6.78 M | +15 % |
| EBITDA | €3.15 M | €2.64 M | +19 % |
| Operating profit | €1.14 M | €0.89 M | +28 % |
Textmagic SMS platform’s sales results
| H1 2024 | H1 2023 | Change | |
| Unaudited revenue (thousand) | €7,490 | €6,719 | +11 % |
| Volume of SMS messages (thousand pcs) | 128,365 | 136,409 | -6 % |
| Active users* | 23,499 | 32,611 | -28 % |
| Average revenue per user (ARPU, 6 months)** | €319 | €206 | +55 % |
* An active user is any unique paying customer who has used Textmagic SMS platform services during the reporting period.
**ARPU is calculated as Unaudited revenue / Active users.
Textmagic platform's revenue distribution is similar to last year, with minor variations across major regions. The US and Canadian markets collectively represent the majority of revenues at 65% (H1 2023: 67%). The UK market has grown to account for 24% (H1 2023: 22%). The Australian market has remained consistent at 6% of sales, while the European Union accounts for 3%. All other regions contribute the remaining 2% of sales in both periods.
TextMagic AS’s consolidated unaudited interim report for the 6 months of 2024 is attached to the release in PDF format.
Additional information:
Getter Grünmann
TextMagic AS, CFO
CONSOLIDATED UNAUDITED INTERIM FINANCIAL STATEMENTS FOR 6 MONTHS OF 2024
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| (in thousands of euros) | 30.06.2024 | 31.12.2023 | 30.06.2023 | 31.12.2022 |
| Non-current assets | ||||
| Property, plant and equipment | 102 | 105 | 172 | 191 |
| Intangible assets and goodwill | 32,963 | 32,854 | 54,496 | 51,944 |
| Total non-current assets | 33,065 | 32,959 | 54,668 | 52,135 |
| Current assets | ||||
| Trade and other receivables | 90 | 24 | 24 | 1 |
| Prepayments | 200 | 231 | 157 | 130 |
| Financial Investments | 3,500 | 2,500 | 0 | 0 |
| Cash and cash equivalents | 4,229 | 3,900 | 5,608 | 9,145 |
| Total current assets | 8,019 | 6,655 | 5,789 | 9,276 |
| TOTAL ASSETS | 41,084 | 39,614 | 60,457 | 61,411 |
| Liabilities | ||||
| Current tax liabilities | 411 | 232 | 196 | 102 |
| Trade and other payables | 882 | 791 | 875 | 988 |
| Debts to shareholders | 0 | 0 | 0 | 2,550 |
| Contract liabilities | 1,668 | 1,659 | 1,737 | 1,546 |
| Other provisions | 679 | 1,117 | 914 | 739 |
| Total current liabilities | 3,640 | 3,799 | 3,722 | 5,925 |
| Total liabilities | 3,640 | 3,799 | 3,722 | 5,925 |
| Equity | ||||
| Share capital | 33,575 | 850 | 850 | 850 |
| Share premium | 141 | 51,242 | 51,242 | 51,242 |
| Reserve capital | 85 | 85 | 85 | 0 |
| Other reserve | 2,360 | 2,035 | 1,659 | 1,651 |
| Foreign currency translation reserve | (13) | (21) | (21) | (41) |
| Retained earnings | 1,296 | (18,376) | 2,920 | 1,784 |
| Equity attributable to owners of the parent | 37,444 | 35,815 | 56,735 | 55,486 |
| Total equity | 37,444 | 35,815 | 56,735 | 55,486 |
| TOTAL EQUITY AND LIABILITIES | 41,084 | 39,614 | 60,457 | 61,411 |
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
| (in thousands of euros) | 01.01.2024-30.06.2024 | 01.01.2023-30.06.2023 |
| Revenue | 7,809 | 6,779 |
| Other income | 70 | 40 |
| Goods, raw materials and services | (2,396) | (2,285) |
| Other operating expenses | (1,050) | (851) |
| Work performed by the entity and capitalized | 2,083 | 1,084 |
| Employee expenses | (3,346) | (1,992) |
| Depreciation, amortization and impairment of non-current assets | (2,010) | (1,757) |
| Other expenses | (21) | (131) |
| Operating profit (loss) | 1,139 | 887 |
| Discontinued Operations | 0 | (181) |
| Financial Income | 152 | 56 |
| Profit (loss) before tax | 1,291 | 762 |
| Income tax | (4) | (5) |
| Profit (loss) for the period | 1,287 | 757 |
| Other comprehensive income | | |
| Items that are or may be reclassified subsequently to profit or loss | ||
| Foreign currency translation differences | 8 | 20 |
| Other comprehensive income for the period, net of tax | 1,295 | 20 |
| Total comprehensive income for the period | 1,295 | 777 |
CONSOLIDATED STATEMENT OF CASH FLOWS
| (in thousand euros) | 01.01.2024 - 30.06.2024 | 01.01.2023 – 30.06.2023 |
| Cash flows from operating activities | ||
| Profit (loss) for the period - continuing operations | 1,287 | 938 |
| Adjustments for: | ||
| Depreciation and amortization | 2,010 | 1,757 |
| Financial Income | (152) | (56) |
| Other adjustments | 169 | 211 |
| Total adjustments | 2,027 | 1,912 |
| Changes in trade and other receivables | (66) | (25) |
| Changes in contract liabilities | 9 | (18) |
| Changes in prepayments | 34 | (27) |
| Changes in trade and other payables | (167) | 325 |
| Net cash from operating activities – continuing operations | 3,124 | 3,105 |
| Net cash from operating activities – discontinued operations | 0 | (413) |
| Net cash from operating activities | 3,124 | 2,692 |
| Cash flows from investing activities | ||
| Net cash flows from business combinations | 0 | (1,100) |
| Interest received | 152 | 56 |
| Fixed-term deposits | (1,000) | 0 |
| Acquisition of property, plant and equipment | (30) | (12) |
| Development expenditure | (1,925) | (783) |
| Net cash used in investing activities – continuing operations | (2,803) | (1,839) |
| Net cash used in investing activities – discontinued operations | 0 | (1,859) |
| Net cash used in investing activities | (2,803) | (3,698) |
| Cash flows from financing activities | ||
| Payouts to shareholders | 0 | (2,550) |
| Net cash from financing activities – continuing operations | 0 | (2,550) |
| Net cash from financing activities – discontinued operations | 0 | 0 |
| Net cash from financing activities | 0 | (2,550) |
| TOTAL CASH FLOWS | 321 | (3,556) |
| Cash and cash equivalents at the beginning | 3,900 | 9,145 |
| Effect of movements in exchange rates on cash held | 8 | 19 |
| Cash and cash equivalents at the end | 4,229 | 5,608 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
| (in thousands of euros) | Total equity attributable to owners of TextMagic AS | ||||||
| Share Capital | Share premium | Reserve capital | Other reserve | Foreign currency translation reserve | Retained earnings | Total equity | |
| Balance at December 31, 2022 | 850 | 51,242 | 0 | 1,651 | (41) | 1,784 | 55,486 |
| Profit (loss) for the period | 0 | 0 | 0 | 0 | 0 | 757 | 757 |
| Other comprehensive income | 0 | 0 | 0 | 0 | 20 | 0 | 20 |
| Other changes in equity | 0 | 0 | 85 | 8 | 0 | 379 | 472 |
| Balance at June 30, 2023 | 850 | 51,242 | 85 | 1,659 | (21) | 2,920 | 56,735 |
| Profit (loss) for the period | 0 | 0 | 0 | 0 | 0 | (21,414) | (21,414) |
| Other comprehensive income | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other changes in equity | 0 | 0 | 0 | 376 | 0 | 118 | 494 |
| Balance at December 31, 2023 | 850 | 51,242 | 85 | 2,035 | (21) | (18,376) | 35,815 |
| Profit (loss) for the period | 0 | 0 | 0 | 0 | 0 | 1,287 | 1,287 |
| Other comprehensive income | 0 | 0 | 0 | 0 | 8 | 0 | 8 |
| Coverage of losses | 0 | (18,376) | 0 | 0 | 0 | 18,376 | 0 |
| Other changes in equity | 32,725 | (32,725) | 0 | 325 | 0 | 9 | 334 |
| Balance at June 30, 2024 | 33,575 | 141 | 85 | 2,360 | (13) | 1,296 | 37,444 |
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